This Canadian broker believes he’s found a sure-fire way to get self-employed clients’ deals over the line.
Industry players in Canada are frustrated by the lack of options for self-employed clients, but the best way to navigate this area, says Jake Abramowicz of Mortgage Edge, is to assemble a solid stable of a few lenders willing to go the extra mile.
“The attack on self-employed clients is really bothering me; you have to make a compelling case to the lender to prove they are good candidates,” he told MPA sister publication, Canadian Mortgage Professional
“When I have a self-employed client I go to three underwriters who have worked on these types of cases in the past and who are willing to do the work.”
Options for for self-employed clients – especially those who require insurance for a high ratio mortgage – are shrinking. Earlier this year Canada Mortgage and Housing Corporation announced it would no longer insure self-employed homebuyers who do not have third party income verification.
However, Canada’s other two insurers, Genworth and Canada Guaranty, have stated they will not be making changes to their respective self-employed programs.
There are options for brokers with tricky self-employed clients, especially for those professionals who are willing to build a rapport with certain lenders, says Abramowicz.
“It’s all about relationships with lenders, underwriters and BDMs,” he says. “I have to work with who I have and who I know.”
Do self-employed clients cause as big a headache in Australia as they do in Canada? Have your say below.